BNZ Weekly Overview - The Week Gone By
BNZ WEEKLY OVERVIEW
The Week Gone By
The 2005/06 Budget was read this afternoon and you'll be so inundated with details of it in the media there is really no point going into major detail here. You can however check out the commentary written by our markets economists which should appear tonight or tomorrow at www.bnzmarkets.co.nz.
In summary, the Minister is predicting continued big but declining surpluses, has a few positive things for businesses, and is moving on fiscal drag caused by rising inflation/wages generally pushing people into higher tax brackets - but only three years from now when the benefits will have been wiped out by further fiscal drag between now and then anyway in all probability!.
In other news this past week we have seen some strong retail spending data for the March quarter, an easing in the degree of consumer pessimism, and evidence that although the housing market is turning, it remains fairly active.
Our fortnightly confidence survey has revealed a small reduction in pessimism, but a few more negative comments about particular industries.
the latest Weekly Overview See..
Tony Alexander Chief Economist Bank of New Zealand